Just when you though RoHS was going to saddle you with extra paperwork...

[reaiken]

...they come along with this, buried in the "health care reform" bill:

http://money.cnn.com/2010/05/21/smallbusiness/1099_deluge/index.htm?postversion=2010052113

http://money.cnn.com/2010/07/09/smallbusiness/irs_1099_flood/

I'm not a very good accountant, but if I read this correctly, all of us small amp manufacturer guys are now going to have to file 1099s for every vendor from whom we purchase $600 or more in goods or services, starting in January of next year. We'll have to also gather taxpayer id numbers from each of them. That means chassis vendors, transformer vendors, speaker vendors, passive components vendors, PCB vendors, contract assemblers, hotels, NAMM convention fees, computer vendors, advertising, etc.

The weird part is that you don't have to 1099 if you paid the vendor with a credit or debit card. There will be a separate form for reporting those transactions starting next year. That will be a nightmare to deal with, as you not only will have to keep track of all your purchases, you also have to keep track of how you paid them.

Just one more burden to deal with. I already have to do a mound of paperwork every month and even more every quarter and at year's end. And you guys wonder why boutique amps cost so much, and why people are sending their manufacturing overseas in droves!

RA

P.S. I don't know if this qualifies as a political post or not. If so, mods feel free to delete it. I intended it as more of a business-cost-related rant.

[bigdaddy]

hasn't that always been the case?

[Tom CT]

P.S. I don't know if this qualifies as a political post or not. If so, mods feel free to delete it. I intended it as more of a business-cost-related rant.

Considering the very first sentence of your link includes the phrase "tax forms", you should probably delete the thread. Just a thought.

[reaiken]

hasn't that always been the case?

I believe it was only for non-employees who provide services of $1000 or more. It has never been for goods and services, especially not of only $600...that covers a lot of stuff - you could buy $600 of paper from Office Depot throughout the year and have to 1099 them, if I'm reading that correctly. I hope this is not the case!!

[Mudder]

The gov't thinks there's $100 billion in collectible taxes that can be gotten from this 1099 process, give or take.

[reaiken]

Considering the very first sentence of your link includes the phrase "tax forms", you should probably delete the thread. Just a thought.

That brings up a good question - are business-related tax costs considered political here on TGP? I thought the original intent of banning political topics was to avoid the usual Republican vs Democrat infighting that always occurs. Taxes are universal! Also, this directly affects the costs of all of us small-business amp guys.

[offbeat]

I work for a small-to-mid size business (150 employees or so). I look at all the administrative crap my boss has to deal with, when he'd rather be working with his customers, and I'm glad it's his headache and not mine.
After a few weeks of endless forms, I'm afraid I'd have a very short fuse.

[whiteop]

I predict the most creative taxation ever in the coming years...:facepalm

[Mudder]

Oh, it won't be that creative.

[stvnscott]

I closed 2 businesses recently because of exactly this. I was employing 6 people, but not making any money myself. I did it to keep those people working and to build up intagible assets/equity that might pay off in the future. I read what was coming in business taxes and red tape and decided it wasn't worth it anymore. I still have interests in 3 businesses that are making me some money or building equity, but I'll be in the break-even state on them by this time next year, so I'm looking for ways to cash out of them ASAP. It is not a good time to be a small business. I'll be looking for a day job soon--it's much simpler and cheaper.

The only small business person I know who is happy right now is my CPA.

[Baloney]

This is technically a political thread. THIS IS EXACTLY WHY THIS STUFF NEEDS TO BE DISCUSSED!!! Taxing an amp maker into oblivion is insane!!! Talk about creating more unemployment!! One day they will increase the economic burden on forum owners as well!!

IBTL

[guitarist58]

I don't see why Apple or Adobe would have any problem giving me their taxpayer ID so I could 1099 them :)





Do you? :confused:






:messedup

[gainiac]

I think if you keep the discussion about the mechanisms versus doctrine and philosophies usually a thread of this type is allowed.

[stump]

I own a business and as a general rule Corporation to Corporation= no 1099. Corp to Sole Proprietor or individual, not employee= 1099. If I have to send a 1099 to and gather information from all of my vendors then I may as well close the doors, I won't have the time to do any work.

Over the past 13 years in business I've had to contend with rising taxes, rising general expenses and rising insurance costs while profit margins and volume of business have decreased. This year has been the worst year I've ever had with customers not paying me or going out of business. I'm currently working on an exit strategy as it is becoming more and more difficult to make even a very modest living. Good luck to the rest of you small business owners.

[maccampbells]

Congress is currently working on eliminating this part of the health bill.

[driver8]

*cough* political thread *cough*

[chrisgraff]

Congress is currently working on eliminating this part of the health bill.

It isn't outside the realm of possibility that a line-item like that could ultimately raise amp prices for all of us.

What, is TGP now 60,000 strong? That's a lot of future unhappy amp buyers.

[stvnscott]

Congress is currently working on eliminating this part of the health bill.

Whew! For a second there I was worried we couldn't trust them to read or know what's in the bills they are passing. Oh. Wait.

This just in... Trees hardest hit. Paper mills rejoice. Viva la révolution’ vert!

:nuts

[big jilm]

:bitch

Trying.... Not..... To...... Go...... Political........ Aaargh!!!!

:bitch

[Foxtrot]

That brings up a good question - are business-related tax costs considered political here on TGP? I thought the original intent of banning political topics was to avoid the usual Republican vs Democrat infighting that always occurs. Taxes are universal! Also, this directly affects the costs of all of us small-business amp guys.

This is not a political thread.

It is informative for people in this industry.

All the other people who've posted political crap in this thread should man up & delete that shit from this otherwise INFORMATIVE thread.

Thanks for the heads up.

[JDJ]

I closed my business in February and went back to the government sector... which I don't think will ever go out of business.